Simple Trend Follower System - page 9
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Same example as previous post but weekly.
Very fAnny
Euro weekly volatility is still high, but remeber ADX/-DMI is counting 14 weeks on this picture and that's is 75% of the move. It could be a cheat to trade.
Hourlies are a tiny timeframe but see inside the blue rectangle.
During that period ADX prevented us to take failed trades.
But the most interesting part here is MACD patterns are there just to be traded same asthis thread
Some members are posting about the lack of accuracy of TA on last days. I think the we could easily understand what's going on by showing a D chart with this system.
We're on an dangerous zone. No volatility at all.
I like to spent a lot of time just looking charts, by going forward and reward. In that way I discovered the MACD pattern.
In the past, Greeks spent a lot of time by just looking to world around to discover things. I'm not Greek but I like to observe.
Wilder's explain very well about the ADX behavior and the things we should observe prior to trade. .
However the implicit lag on the indicator make us to blame often when we miss an important move. We pay attention to the ADX, up to 20 below to 20, If it's gaining momentum or losing it, so on.
Let' see next picture first
When cable rebounded ADX was falling. See rectangle. Still above 20 but falling anyway, we lose some confidence because that... then we almost had lost the whole move.
However but taken out the ADX we "observe" every time that DI- or DI+ goes up above 20 level we get a move.
On this case I'm going to test a new variation of this system:
Visually, I'm going to reduce the importance of the ADX
Practically, I'm going to remove the MACD and avoiding only the trades where ADX is below 20.
Let's see what's happens...
We had a nice week with some "paper" trades on majors.
On next example we see Cable trades.
Seems like the simplest version could be automated.
Buy when DI+ above 20.
Sell when DI- above 20.
I will ask igorad to give us a hand here.
Problem of remove the ADX and because that losing the volatility idea of the market is on these days we're screwed.
Picture below is very clear. Attention on blue rectangle.
Meanwhile on first DMI we see signals to go long/short we are screwed on almost all. However, by adding DMI as is on second DMI the ADX line prevents us to jump on trade due to low volatility.
It's redundant but I must say it again: no system guarantee just winners. We could add something and works for some time or certain market conditions, then fails. Always happens.
However we learn from systems the best is not the one that gives you triggers/signals but the one that tells you the right moment to trade is a best choice.
For people wanting to test last variation of the system I've made an small indicator to show ADX crosses.
However I still need to add a feature to only shows the cross when DMI cross is above 20 or below.
https://www.mql5.com/en/forum/175611/page2
Linuxser,
Thanks for the great system. May I ask how many systems are you using for live trading? which ones are your favorite? Thanks!
Linuxser, Thanks for the great system. May I ask how many systems are you using for live trading? which ones are your favorite? Thanks!
My favourite is the Advanced: https://www.mql5.com/en/forum/178666
Too many systems
. I jump from one to another just for fun or convenience.
But years later I've learned there is no much difference between systems.
Difference is the approach and traders logic combined with traders eye.
My favourite is the Advanced: https://www.mql5.com/en/forum/178666
Too many systems
. I jump from one to another just for fun or convenience.
But years later I've learned there is no much difference between systems.
Difference is the approach and traders logic combined with traders eye.But the Advanced and the MACD pattern are my heart.